Love it or hate it, financial planners need to be open to talking about bitcoin in 2025

There’s no getting away from cryptocurrencies and their popularity right now.

According to the most recent figures published by the Financial Conduct Authority (FCA), 12% of UK adults own cryptoassets – that’s around 7 million people. And many more may be thinking about investing in crypto – awareness of cryptoassets is 93% in the adult population.

So, you may be finding it increasingly difficult to avoid or ignore questions about digital assets from your clients. What’s more, as a people-driven business, responding to consumer needs and demands is at the heart of what you do.

Read on to find out why you need to be open to talking about cryptocurrencies and learn how this could benefit your clients in 2025 and beyond.

Demand for bitcoin continues to grow after a record year

For many years, bitcoin was a niche investment for a select group of enthusiasts.

The lack of regulation and historical performance data, the prevalence of scams, and its inherent volatility, made bitcoin an option that many investors were happy to disregard.

Yet, over the past decade, bitcoin has grown in popularity, especially among younger generations. Government figures reveal that 76% of cryptoasset owners are under the age of 45.

So, being open to talking about crypto could be essential if you want to attract and retain the next generation of clients.

What’s more, after a record-breaking 2024, in which the Economic Times reports that the cryptocurrency market cap doubled, it seems likely that demand for bitcoin will continue to grow.

And not just among millennials.

The Financial Times revealed increasing demand from wealthy clients for professional financial advice about investing in cryptocurrencies.

So, with bitcoin potentially becoming a mainstream financial asset, talking crypto could be essential for building long-term relationships with clients of all demographics.

The regulatory landscape of cryptocurrency is changing

A pro-crypto leadership in the US and the easing of restrictions around cryptoassets in countries such as China and Canada, is driving a global evolution of the regulatory landscape.

In the UK, on 26 November 2024, the FCA published a detailed roadmap for making cryptoassets a fully regulated asset class by 2026.

Change is not only afoot in some quarters, but also underway in others.

As you know, to remain competitive in the fast-moving world of financial services, you need to move with the times and adapt to changing consumer expectations.

According to Cryptonews, Morgan Stanley is already reportedly exploring the possibility of expanding its sales of bitcoin Exchange-Traded Funds (EFTs) by allowing its brokers to actively recommend these products to clients.

So, getting comfortable talking about cryptoassets now could help you stay ahead of the curve.

4 benefits of talking to your clients about bitcoin

If you currently shy away from conversations about bitcoin and other cryptoassets, you might want to re-consider this approach in 2025.

By talking about crypto you could help your clients to:

1. Manage risk more effectively – Cryptocurrencies are typically extremely volatile. You could help your clients understand and assess the risks involved so that they can make more informed decisions.
2. Stay within the rules – As a financial professional, you know your stuff when it comes to the latest legislation and regulations around cryptocurrency. Your clients may be less well informed. For example, the FCA’s research has found that a third of people mistakenly believed they could raise a complaint with the FCA if something went wrong with their cryptocurrency investments.
3. Understand the tax implications of cryptocurrency investments – You could help your clients understand and manage the potential Income Tax and Capital Gains Tax implications of owning and trading cryptoassets as part of their broader financial plan.
4. Avoid financial scams – Unfortunately, financial fraud is rife in the cryptocurrency space. This is especially worrying as the majority of cryptoasset owners are younger people who may be persuaded to invest by unregulated social media “finfluencers”. Financial planners could play a key role in educating their clients about how to spot scams and protect themselves from them.

Love it or hate it, cryptocurrencies are here to stay. So, if the thought of talking all things bitcoin with your clients still makes you nervous, hit us up for a little friendly conversation and a major confidence boost.

Drop us an email at hello@melo.co.uk or call us for a chat on 0113 4656 111.